Trump orders marijuana reclassification to Schedule III
President Trump signed an executive order to reclassify marijuana from Schedule I to Schedule III under the Controlled Substances Act. Experts say Schedule III status would formally recognize accepted medical use and expand federal research, allow cannabis businesses to claim standard federal tax deductions (mitigating IRS 280E impacts), and could reduce certain criminal penalties, though political opposition remains.
đ Key Facts
- President Trump signed an executive order to reclassify marijuana from Schedule I to Schedule III.
- The reclassification frames marijuana as a less dangerous drug and would formally recognize an accepted medical use.
- Experts say Schedule III status would allow cannabis businesses to claim standard federal tax deductions, mitigating the effects of IRS 280E.
- Schedule III designation could enable more physician recommendations and expand federal research into cannabis.
- The report says the change could reduce certain criminal penalties tied to Schedule I status but notes the action faces ongoing political opposition.
đ Relevant Data
As of May 2025, 24 U.S. states and Washington, D.C. have fully legalized cannabis for recreational use, while 38 states have legalized it for medical use.
Where is Cannabis Legal in North America in 2025? â Cova Software
The U.S. cannabis market size was estimated at USD 38.50 billion in 2024 and is expected to grow at a CAGR of 11.51% from 2025 to 2030.
U.S. Cannabis Market Size & Share | Industry Report, 2030 â Grand View Research
In 2023, U.S. law enforcement made over 217,000 arrests for marijuana-related offenses, with possession accounting for 84 percent of those arrests.
Over 200,000 Arrests for Marijuana Possession in 2023, Per FBI Data â Filter
The racial disparity between Blacks and Whites in cannabis possession arrest rates among adults was 3.5 based on data from 2000 to 2019.
Cannabis Decriminalization and Racial Disparity in Arrests for Cannabis Possession â PMC
đ° Source Timeline (2)
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- The order specifically targets moving marijuana to Schedule III (from Schedule I).
- Experts say Schedule III status would allow cannabis businesses to claim standard federal tax deductions (mitigating IRS 280E impacts).
- Schedule III would formally recognize accepted medical use, potentially enabling more physician recommendations and expanded federal research.
- Report notes potential reduction of certain criminal penalties associated with Schedule I status and references ongoing political opposition.